800.8820/922: Telegram
The Secretary of State to the Ambassador in Bolivia ( Boal )
39. Owing to the liberal licensing policy of the Board of Economic Warfare with respect to exports to the other republics there are now [Page 133] produced very substantial quantities of materials which are awaiting shipment. With regard to certain countries, including Bolivia, the backlog of goods now licensed and produced exceeds the available shipping space for many months.
The composition of this backlog for Bolivia as of December 31 and the tonnages involved are summarized as follows:
| Iron and steel | 1,551 | tons |
| Tinplate | 396 | “ |
| Other Paper | 528 | “ |
| Caustic and soda ash | 552 | “ |
| Petroleum products | 1,814 | “ |
| Naval stores | 5 | “ |
| Machinery | 752 | “ |
| Other chemicals | 358 | “ |
| Glass | 420 | “ |
| Lumber | 1,575 | “ |
| Cement and plaster | 481 | “ |
| Foodstuffs | 184 | “ |
| Miscellaneous | 2,150 | “ |
| Wheat and flour | 39 | “ |
| Rails and accessories | 38 | “ |
| Cargo at West Coast–Breakdown not available | 10,102 | “ |
| Total | 20,945 | tons |
In addition there are 274 tons of newsprint and 15,050 tons of coal and coke licensed. These commodities will be shipped in accordance with existing arrangements.
You will appreciate that in addition to the known backlog a large volume of goods will come forward as result of outstanding licenses plus additional licenses contemplated hereinafter and that it will take many months to liquidate these combined cargoes at the rate of 4,500 tons (target tonnage) per month.
While new ship construction is currently very satisfactory this will not relieve commercial cargo routes inasmuch as the tonnage requirements of the military forces must receive preference.
In order to alleviate this cargo situation the Board of Economic Warfare is issuing a Current Controls Bulletin which reads as follows:
“Effective immediately and until March 1, 1943, the Office of Exports will follow a highly selective commodity licensing program. This program will permit the reappraisal of goods already licensed for export and assure the supply of urgently needed goods. This program will not, however, cause any interruption or delay in the continued flow of exports to the seven South American countries affected, [Page 134] in as much as there are now more than enough articles and materials licensed and available for shipment which will, within the limits of available shipping, move forward during the period in which this program is in effect.
“Under the program the Office of Exports will approve export license applications for shipments to Argentina, Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela only where they fall into the following categories: (1) Materials or shipments which are entitled to AA or A shipping priority rating (See Comprehensive Export Control Schedule No. 10, Page 11533), (2) Materials which are subject to allocation allotment or quota already secured from the War Production Board and scheduled for licensing during a particular period and then only in cases of extreme urgency, or (3) Materials which are required to maintain the public health in the country of destination.
“Applications for export to the above mentioned countries not within any of the above categories should not be filed until further notice.
“Application for licenses not within the above categories which are now pending and which cannot now be approved because of the present shipping situation will be held by the Office of Exports for approximately 60 days and reviewed in the light of the availability of shipping facilities at that time. The applicants in such cases will be notified that their applications are being held in accordance with this program.
“These restrictions apply also to applications for shipping space for articles and materials under general license.”
The Department is aware that this announcement of the Board of Economic Warfare may occasion considerable press comment. Therefore, the mission is requested to review this general cargo problem with the appropriate authorities, and inform them of the reasons for the Board of Economic Warfare’s action.
Mr. Horton Henry of the Department and Dr. H. A. Wilkinson of the Board of Economic Warfare will arrive in La Paz on or about February 9 to present a modified plan of decentralized export control, concerning which a separate instruction is going forward shortly. They will bring with them such additional data as is available concerning the backlog as an aid to the mission in analyzing this problem with the Bolivian authorities. In this connection the January and February shipping programs have been prepared and thus there will be no interruption in the flow of exports.
The Board of Economic Warfare proposes to issue its bulletin on Tuesday, January 12 and it is suggested that you consequently discuss the matter at once with the appropriate authorities.
- Issued in November 1942 by the Office of Exports, Board of Economic Warfare.↩